Retail Strategy

Mike Amesbury Excerpts

Wednesday 10th July 2019 Westminster Hall

[Mike Amesbury (Weaver Vale) (Lab)]

Part of the solution has to be business rates; that is what is fed back to me in my community. We have had grand talk and some baby steps forward from the Government, but is it not now time for radical reform to bring in investment and protect enterprise?

[Liz Twist]

Business rates certainly feature strongly in the study by the Housing, Communities and Local Government Committee, of which I was a member until recently, and in submissions to me by organisations such as the British Retail Consortium and by individual stores. We certainly need to look at that issue, which I will return to.

As I said, I have visited different places, and there are more closures that I do not know about. It is not just about jobs, although they are hugely important, and nor is it just about empty shops; it is about the impact on our local communities, especially those such as Blaydon that are made up of several smaller towns. Shops are such a central part of our high streets; from Crawcrook to Chopwell, from Birtley to Blaydon, and everywhere else in my constituency, they are a really important part of making our high streets vibrant.

A few weeks ago, I had the pleasure of visiting a shop in Birtley called High Street Quilting—a real Aladdin’s cave that stocks every imaginable thread, fabric, tool and design for quilters and embroiderers. People in one of the back rooms were getting guidance on developing their dressmaking and upholstery skills, and the shop was due the very next day to have an embroidery class, which was hugely well subscribed. Such shops create real variety and focus for our high street, but the owner told me about the difficulties she faces as a small business owner in making ends meet, even with the small business rates relief, and in ensuring that she can continue to employ people and move forward. We must not forget the small businesses when we talk about the bigger picture.

We face a changing external environment as a result of online shopping and of failures in strategy that have led to venture capital taking over stores, with scant regard for retail. The British Home Stores closures happened before my time as a Member of Parliament, but I know from talking on the doorstep to people who worked for BHS what a traumatic experience that was.

Nationally, retail employs 3 million people, with an additional 1.5 million jobs dependent on the success of the retail industry. Retail produces 11% of the UK’s economic output and approximately £7 billion in business rates, which is far higher than any other industry. It is the largest private sector employer in the UK and the second largest contributor of tax. The British Retail Consortium estimates that 74,000 retail jobs were lost in 2018, as my hon. Friend the Member for Warrington South (Faisal Rashid) noted. Sadly, that trend is expected to increase in future years. We should remember that the workforce are predominantly women, and many of their jobs are part-time, so the situation has a disproportionate effect on some of our constituents.

I am disappointed that the Government’s industrial strategy has so little to say about the retail sector. Given that 9% of jobs across the country are in retail, it is really disappointing to see the sector being given such scant focus.

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[Mike Amesbury]

I agree on the point about quality. There should be a race to the top. Sometimes quality costs, so quality might mean better pay. Paddy Lillis, the general secretary of the Union of Shop, Distributive and Allied Workers, is my constituent; I recently had a conversation with him, and there is a campaign to raise the living wage to £10 an hour. Does the hon. Gentleman agree with that?

[Bill Grant]

As someone whose mother worked in the pit canteen and made beds at Butlin’s on a Saturday, I fully agree that those who provide such services deserve better pay. We need to recognise those in hospitality and eateries, and the value of those who prepare and serve the food. As a nation, for decades and generations we have undervalued those people, so I totally agree with the hon. Gentleman, and the price has to be passed on to the consumer.

Employees—dare I say the next line? The hon. Gentleman must have been looking over my shoulder—should receive fair pay for work undertaken, and should have security of tenure in their job. Customers should feel involved in the purchase, and should engage with the sales assistant. It should not be a beat-the-clock exercise, in which people have to hurry to return to their vehicle before they receive a fine for overstaying their welcome. Nor should there be an additional cost burden on retailers if their staff wish to park in the vicinity of their place of work; in certain cities, retailers are being asked for £500 or thereabouts per annum per member of staff who wishes to do that.

Recently it has been announced that in Glasgow city centre, parking restrictions and charges will now apply on the Sabbath—on Sundays. Business representatives have already taken to the media to express their concern that the move will lead to shoppers deserting the city centre on a Sunday in favour of large out-of-town shopping centres, which, as we are all aware, generally have free parking. As a business person once said, “When you can’t change the direction of the wind, adjust your sail”. We should manage the change. We need to encourage a steady footfall for the future, and stop what appears to be a stampeding exodus of high street shoppers to out-of-town retail centres or online facilities. In Scotland, that may mean the Scottish Government and councils working together, and reconsidering their planning and roads legislation, and policies that affect town centres.

Certainly, in my constituency the main towns are, for want of a better word, hurting. They have not hurt as much in their whole existence, and in many cases they have lost their dignity, which they richly deserve to have returned to them. However, the centre of Cumnock is an exception, as a small town that has recently been sympathetically revitalised by the introduction of a small new build retail facility that blends into the streetscape. The principal occupier, a prominent food retailer, appears to complement the existing, varied retailers—so well done to East Ayrshire Council. Local chambers of commerce and industry, such as the Ayrshire chamber of commerce, are to be commended for their encouragement of local enterprise and excellence.

Inevitably some businesses in the UK will, regrettably, fail, for one or more of the reasons I have indicated. The Government need to consider taking appropriate measures to ensure that the auditing of retail businesses is robust; that any asset stripping, particularly by big businesses, will be better regulated in the future, for the protection of employees and shareholders; and that a review—and, if it is deemed appropriate, reform—is carried out with respect to company voluntary arrangements. There is also a need to look at business rates and taxes.

Our future is created by what we do while we are living for today, so I hope that as a result of the contributions to the debate, the Minister will be encouraged to reflect on the Government’s planning for tomorrow. We need more practical measures like the future high streets fund, which was introduced in the 2018 Budget. It is an excellent boost to high streets, despite the failures mentioned earlier. Hopefully those who reapply will be successful next time. I ask the Minister to bring forward further measures to secure our local retail trade and help to re-energise high streets throughout the UK, while remembering that high streets are no longer a cash cow to be financially milked by an outdated business rating system that needs grassroots reform.

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[Justin Madders (Ellesmere Port and Neston) (Lab)]

It is a pleasure to serve under your chairmanship, Sir David. I, too, congratulate my hon. Friend the Member for Blaydon (Liz Twist) on securing this debate about a topic that is vital to the survival of our high streets, as evidenced again by the number of Members present. I say “again” because this is not the first time we have gathered to discuss the causes of town centre decline and what we should do about it. Indeed, I took part in a debate on urban regeneration shortly after being elected to this place four years ago.

Very little has changed since then. In fact, things have probably got worse. In 2018, nearly 85,000 retail jobs were lost in the UK as businesses continued to go bust. In the past 18 months alone, the following big chains have gone into administration: Greenwoods, HMV, Berketex, Crawshaw, Evans Cycles, American Golf, Orla Kiely, Poundworld, House of Fraser, Gaucho, Warren Evans, East, Carpetright, Toys R Us, Maplin, Mothercare, Homebase, and L. K. Bennett. Many household names; many long-standing companies. It is a crisis.

The British Retail Consortium’s monthly footfall tracker showed that store visits hit a six-year low in May this year, with declines experienced in every region and across high streets, retail parks and shopping centres. According to a new report, online shopping will account for more than 50% of retail sales within the next 10 years. The report states that that growth will be powered by three primary factors: the changing demographics of the UK adult population; the development of faster, cheaper home deliveries; and fewer physical stores.

Our high streets and small business owners will continue to be hit by those changes in shopping habits. The Centre For Towns showed that the decline of our high streets has picked up pace in the past 10 years as consumers shop online rather than visiting the high street. The Office for National Statistics reported that the number of retail businesses and the number of high street retail jobs fell in every region of England except London between 2012 and 2017.

Those trends are reflected in the two main towns in my constituency: Ellesmere Port and Neston. Both have a retail offer significantly smaller than it was five years ago, due to the dramatic changes we have heard about. The town centre in Neston has lost all its banks, which has had a negative impact on both customers and retail businesses. A lot of retail units are in private ownership, many of them too large for what retailers are looking for nowadays, and shops in Ellesmere Port are closing regularly, and are not being replaced. When banks close branches, they undergo what I consider to be a cursory consultation that changes nothing and does not require them to think about their wider responsibilities for the vitality of our town centres.

[Mike Amesbury]

Does my hon. Friend agree that it is rather confusing to look at the ownership of some of those banks? Of course, we stepped in some time ago—they were bailed out to the tune of billions of pounds—so there is ownership there, but where is the control? It is as though the referee has just walked off the pitch. Do we require Government intervention?

[Justin Madders]

My hon. Friend and neighbour makes an excellent point. Indeed, the power that central Government have through procurement and their control over many of those private enterprises should be used for the wider benefit of communities. As my right hon. Friend the Member for Delyn (David Hanson) mentioned, post offices are a great example of where we have lost control of an organisation. A number of the post offices on high streets in my constituency are closing, without any regard for the wider community impact. We really must begin to take back control, to coin a phrase.

Most of all, it is our town centres that are in need of a retail strategy. They are the heart of our communities, and their importance must not be underplayed. A new approach that regenerates our town centres is vital if we are to preserve their character, restore civic pride and give people a positive reason to visit their high streets. Local authorities have the knowledge and tools to tackle this, but they cannot do so without significant financial support. However, local authority funding has been cut like never before and the money needed for a true transformative approach to regenerate our town centres simply is not there.

As my hon. Friend Member for Batley and Spen (Tracy Brabin) said, we need to be much more joined up in how we approach these things. The move to electric vehicles is one such example. It is not entirely clear who is in charge of the charging infrastructure, but it would be great if there were joined-up thinking, with charging points located in town centres used to encourage people to use the town centre facilities while they charge up.

As we have heard, unfortunately the Government’s plan to address the crisis is to pit towns against one another in a competitive bidding process known as the future high streets fund. Only a lucky few get a slice of the pie. I learned this week that despite putting in an excellent bid for Ellesmere Port, my local authority was not successful in the process. What does that say to the people of Ellesmere Port about the importance of their town, compared with others? What will the Government do to support Ellesmere Port town centre? Will there be a second round of funding? Will there be other initiatives, or will we have a rerun of the 1980s policy of managed decline for parts of the north?

My local council is doing what it can, but the multifaceted challenges we have heard about in the era of austerity cannot fall entirely on its shoulders. The trends are there for all of us to see. The evidence is clear that the capacity to meet such challenges has been hollowed out after a decade of cuts. It will take sustained, focused and locally driven but nationally supported investment. It will take imagination, requiring a change from the old way of doing things. It will take central Government to realise that one of the reasons why so many people feel disengaged and disenfranchised is that when they go to their town centre and see empty shops—